Central bank communication in unconventional times: Some evidence from a textual analysis of the National Bank of Poland communication during the COVID-crisis
Central bank communication in unconventional times: Some evidence from a textual analysis of the National Bank of Poland communication during the COVID-crisis

Summary/Abstract: The article analyses the communication of the National Bankof Poland (NBP) one year after the announcement of thecrisis response package adopted after the outbreak of theCOVID pandemic. It presents the perspective of a centralbank that first entered unconventional monetary groundduring the COVID-crisis. The analysis aims to answer thequestion of what message about monetary policy objec-tives may have been conveyed in communication with re-gard to possible interpretations of the response actions byeconomic agents. Misinterpretations of policy actions at thetime, fuelled by the increased attention to inflation, couldlater contribute to higher inflation persistence. The articlepresents findings based on the innovative use of MAXQDAPro 2022 solutions for textual analysis of central bank’s com-munication. It points to three inconsistencies in the NBP’scommunication that could potentially lead to misinterpre-tation of the NBP’s policy actions in response to the crisisand thus affect the formation of expectations.

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